Council Approves 1% Aurora Marijuana Tax Increase

The Aurora City Council approved a proposal May 18 to backfill funding support for programs targeting mental-health issues, youth and domestic violence victims and directly supporting the work of law enforcement. The measure passed with six votes in favor of the ordinance, and four against.

The ordinance allows for a 1% increase in the special sales tax for retail marijuana to generate an estimated additional $1 million annually. The tax will go into effect July 1.

At-large Council Member Angela Lawson spearheaded the ordinance and Mayor Mike Coffman supported it as a way to restore the city’s financial support for nonprofit and city services originally funded through the photo red light program, which voters overturned via a ballot question in 2018.

Aurora voters in 2014 authorized the city to impose a special sales tax of up to 10% on retail marijuana. The current special marijuana sales tax rate is set at 4%, and a 1% increase will still keep Aurora’s rate on par with or under most metro-area cities with this tax.

The funding will go to organizations that serve as an extension of the city’s efforts to keep the community safe and provide essential services to Aurora’s most vulnerable residents.

These programs also have been receiving funding through Aurora Municipal Court surcharges, but that revenue stream has declined in recent years. The new revenue stream will help make up those losses as well.